Canva Announces Layoffs of 1,271 Employees Amid Restructuring
In a significant move, Canva is laying off 22% of its workforce, offering generous severance packages including MacBooks and LinkedIn Premium.
Canva is cutting 1,271 jobs, representing 22% of its global workforce.
Affected employees will receive six months' salary, MacBooks, and LinkedIn Premium subscriptions.
The layoffs are part of a restructuring aimed at adapting to slowing growth and AI advancements.
Canva, the Australian design platform, has announced a major reduction in its workforce, laying off 1,271 employees, which accounts for 22% of its global staff. This decision comes as part of a broader restructuring effort aimed at streamlining operations and adapting to the evolving demands of the creative software industry. The layoffs were communicated by co-founder and CEO Melanie Perkins in an internal memo, marking what she described as the "most difficult moment" in the company's 13-year history.
The company, which employs over 5,700 individuals across 37 countries, has not specified which teams or locations will be most affected by these cuts. However, the decision follows a year of slowed growth for Canva, the first such occurrence in a decade. Perkins indicated that the company had explored various alternatives before concluding that significant changes were necessary to ensure future stability and growth.
In an effort to support those impacted, Canva is offering an extensive severance package. Each laid-off employee will receive at least six months' salary, retain their company-issued MacBooks, and gain access to a year of LinkedIn Premium to aid in their job search. Additional benefits include one-on-one career coaching, healthcare support for 12 months, and continued access to the company's employee assistance program.
Moreover, Canva is launching the Canva Collective Fund, which provides financial grants of $10,000 to employees who wish to start their own businesses or community projects. This initiative reflects the company's commitment to supporting its former employees in their future endeavors. Employees will also have access to Slack and Gmail for a limited time to facilitate communication regarding their departures.
The layoffs are indicative of broader challenges within the technology sector, particularly as companies grapple with the impact of artificial intelligence on traditional workflows and product offerings. As Canva shifts its focus towards AI-driven features, it aims to consolidate its product teams and simplify management structures. The company is also adjusting its hybrid work policy, requiring most employees to work from the office two to three days a week starting in January. These changes signify a significant shift in Canva's operational strategy as it navigates a rapidly changing landscape.
